Appliance Retailer hhgregg Reports Higher Income
Feb 9, 2011
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U.S. appliance retailer hhgregg, Inc. today reported net income of $26.9 million for the three months ended Dec. 31, 2010, up 18.4% compared to the net income of $22.7 million for the comparable prior year period. For the first nine months of its current fiscal year net income was $33.6 million, up 15.2% from the net income of $29.2 million in the first nine months of the previous fiscal year.
The retail company said the net income increases resulted from the addition of 46 stores in the past 12 months, leading to increased net sales. This was offset by comparable store sales decreases of 6.2% in the third quarter and 1.4% for the nine-month period, as well as other factors.
Appliances accounted for 30% of hhgregg net sales in the most recent third quarter, and was also 30% in the previous year’s third quarter. For the first nine months of this fiscal year, Appliances accounted for 36% of the retail chain’s net sales, and was 36% in the same period of the previous fiscal year.
Comparable store sales of Appliances were down 5.7% in the most recent third quarter. In last year’s third quarter Appliances were up 7.5%
Comparable store sales of Appliances were up 1.6% in the first nine months of the current fiscal year. In the first nine months of the previous fiscal year, Appliances were down 6.3%.
The retailer said appliance comparable store sales decreases in the third quarter was the result of moderate decreases in unit demand and average selling price. Strong demand in the first fiscal quarter (April-June 2010) resulting from U.S. appliance stimulus programs pulled appliance demand into the first fiscal quarter and negatively impacted results in the company’s second and third fiscal quarters.
President and CEO Dennis May said the company is pleased with new store productivity and team performance. “As a result, we remain confident in our ability to continue to gain market share as we enter new markets and move closer to becoming a national retail chain,” May said.
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